Thornton Township High School District 205 Tentative Budget Fiscal Year Ending June 30, 2016

Transcription

1 Thornton Township High School District 205 Tentative Budget Fiscal Year Ending June 30, 2016 Operations Bond & Trans- Municipal Captial Working Life Education &Maint. Interest portation Retirement Projects Cash Tort Safety Total Fund Balance - July 1, ,406,000 9,035,000 3,169,000 10,774,000 1,706,000 6,235,000 5,202, ,000 1,494,000 39,511,000 Revenues: Real Estate Taxes 35,700,000 5,150,000 6,570,000 9,000,000 2,200, , , ,000 60,965,000 Other Local Sources 5,500, ,000 15, , ,000 40,000 25,000 5,000 5,000 5,890,000 Flow Through 35,000 35,000 General State-Aid 26,034, ,034,000 Other State Sources 2,300, ,600, ,900,000 Federal Sources 5,400, ,400,000 Total Revenues 74,969,000 5,250,000 6,585,000 12,700,000 2,300,000 40, , , , ,224,000 Expenditures: Salaries 49,100,000 1,250, ,350,000 Employee Benefits 10,500, ,900, ,400,000 Purchased Services 10,725,000 4,150,000 1,000 8,000, ,300,000-24,176,000 Supplies and Materials 2,410,000 2,200, ,610,000 Capital Outlay 250, , ,000, ,000 4,000,000 Other Objects 300,000 1,000 6,903, ,204,000 Non-Capitalized Equipment 600, , ,000 Tuition 9,500, ,500,000 Total Expenditures 83,385,000 8,351,000 6,904,000 8,000,000 1,900,000 3,000,000-1,300, , ,040,000 Revenue Over (Under) Expenditures (8,416,000) (3,101,000) (319,000) 4,700, ,000 (2,960,000) 505,000 (390,000) 765,000 (8,816,000) Transfers 8,000, (8,000,000) Fund Balance - June 30, ,000 5,934,000 2,850,000 7,474,000 2,106,000 3,275,000 5,707, ,000 2,259,000 30,695,000

2 Thornton Township High School District 205 Presentation of Tentative Budget Preparing Today for the Challenges of Tomorrow August

3 Major Budget Assumptions: Revenues!! R/E Taxes will increase approximately 3.5% as net collections (after non payments and tax appeals) are projected to stabilize.!! General State-Aid will increase $862,000 due to decrease in proration from 13% to 8%.!! State grant revenues will increase due to timing of State payments.!! Federal grants will remain relatively flat. Expenses!! Total salaries are projected to increase 1.4%. It is assumed that staff size will decrease by 15 as most retirements will not be replaced. It is also assumed that certified staff will receive two 2% raises during the fiscal year.!! Employee benefits are projected to increase 3.8%.!! Transportation expenses are projected to increase significantly.!! Debt payments will increase $1.6 million due to the timing of payments.!! Major capital expenses will decrease from $4.5 million in FY 2015 to $4 million. 2

4 Breakdown of Total Budget by Fund Beginning Balance Revenues Expenses Transfers Ending Balance Education $ 1,406,000 $74,969,000 $83,385,000 $ 8,000,000 $ 990,000 Building 9,035,000 5,250,000 8,351,000 5,934,000 Bond & Int. 3,169,000 6,585,000 6,904,000 2,850,000 Transportation 10,774,000 12,700,000 8,000,000 (8,000,000) 7,474,000 IMRF/SS 1,706,000 2,300,000 1,900,000 2,106,000 Capital Projects 6,235,000 40,000 3,000,000 3,275,000 Working Cash 5,202, ,000 5,707,000 Tort 490, ,000 1,300, ,000 Life Safety 1,494, , ,000 2,259,000 Total $ 39,511,000 $104,224,000 $113,040,000 $ 0 $ 30,695,000 3

5 Budgeted Revenues All Funds: Comparison of Budget Verses Prior Years Source FY 2012 FY 2013 FY 2014 FY 2015 BUDGET FY 2016 Real Estate Taxes $ 62,181,000 $ 60,644,000 $ 59,531,000 $ 58,900,000 $ 60,965,000 Other Local Revenues 6,221, ,000 7,009,000 6,145,000 5,890,000 General State-Aid 31,121,000 27,439,000 26,053,000 25,138,000 26,034,000 Other State Grants 7,122,000 9,146,000 7,550,000 5,294,000 5,935,000 Federal Grants 5,397,000 5,892,000 6,213,000 5,594,000 5,400,000 Non-Reoccurring Federal Grants 3,615, , Total Revenues $115,657,000 $109,723,000 $106,356,000 $101,071,000 $104,224,000 4

6 Breakdown of Budgeted Revenues by Source Restricted State 6% Restricted Federal 5% General State-Aid 25% R/E Taxes 58% Other Local 6% 5

7 Budgeted Expenditures All Funds Comparison of Budget Verses Prior Years (Actual and Budget Figures Exclude Major Capital Expenses) Source FY 2012 FY 2013 FY 2014 FY 2015 BUDGET FY 2016 Salaries $ 48,028,000 $ 46,926,000 $ 48,803,000 $ 49,653,000 $ 50,350,000 Employee Benefits 10,520,000 11,075,000 11,186,000 11,950,000 12,400,000 Purchased Services 20,046,000 21,190,000 21,856,000 22,956,000 24,176,000 Supplies and Materials 4,590,000 4,099,000 4,443,000 4,519,000 4,610,000 Capital Outlay 4,448,000 3,325,000 1,079,000 2,219,000 1,800,000 Out of District Tuition & Other 11,072,000 10,904,000 10,574,000 9,502,000 9,801,000 Debt Service 8,328,000 8,330,000 6,984,000 5,284,000 6,903,000 Total Expenses $107,032,000 $105,849,000 $104,925,000 $106,083,000 $110,040,000 6

8 Breakdown of Budgeted Expenditures by Type Debt Payments 6% Out of District Tuition 8% Capital Outlay 4% Supplies & Materials 4% Salaries 45% Purchased Services 21% Employee Benefits 11% 7

9 Revenues vs. Expenses All Funds 128,000, ,000, ,000,000 Total Revenues Total Expenses Excluding Capital Total Expenses 116,000, ,000, ,000, ,000, ,000, (b) 8

10 Revenues Versus Expenses (FY FY 2016) Surpluses/Deficits Excluding Capital Project Activity 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, ,000,000-2,000,000-3,000,000-4,000,000-5,000,000-6,000,000 9

11 Condition Declining Average Daily Attendance 6,500 6,300 6,100 5,900 5,700 5,500 5,300 5,100 4,900 4,700 4,

12 Major Factors Impacting Financial Condition Decreasing Tax Collection Percentages Net Collections After Refunds, Foreclosures and Non-Payments 100.0% 98.0% 96.0% 94.0% 92.0% 90.0% 88.0% 86.0% 84.0% 82.0% 80.0%

13 Historical and Budgeted Fund Balances 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000, * (p) *District received $51 million in bond proceeds in FY

14 Major Financial Threats Facing District! Growing structural deficit. "! Expenses needed to fund current operations are approximately $6 million more than annual revenues the District receives. Fund balances alone are not sufficient to sustain current levels of deficit spending.! Shifting of teacher pension costs from State to District. "! Estimated Impact: Consensus is that the State will shift pension obligations to school districts. This would increase District expenses by $1.6 - $3.6 million annually (est.).! Creation of charter school. "! Estimated Impact: If a charter school is approved within the District, the District stands to lose $4 - $6 million annually.! Continued decrease in average daily attendance. "! Estimated Impact: The District s ADA has decreased by 1,525 students over past five years. The District loses approximately $5,500 for every student lost in this calculation.! Major capital projects need to be addressed. "! The District has major capital needs that will drain critical fund balances. The District may consider borrowing to pay for these expenses going forward. 13

15 End of Presentation Questions and Comments 14